Foundational Concepts
Large Language Model (LLM)
A type of AI trained on vast amounts of text that can read, write, summarise, and reason with language.
Definition
A large language model is the technology powering tools like ChatGPT, Claude, and Gemini. It has been trained on an enormous quantity of written text — books, websites, research papers, and more — and has learned patterns of language and knowledge from that material. As a result, it can answer questions, draft documents, summarise reports, extract key information, and hold a coherent conversation. The 'large' refers to the scale of both the training data and the model itself.
Why this matters for your business
LLMs are the most immediately commercially applicable AI technology for most businesses. They can handle first-draft communications, contract review, customer query handling, meeting summaries, and data extraction without specialist programming knowledge.
Related Terms
Artificial Intelligence (AI)
The broad field of building computer systems that can perform tasks usually requiring human intelligence.
Foundation Model
A large AI model trained on broad data that can be adapted for many specific tasks.
Transformer
The core architecture that powers most modern LLMs, introduced by Google in 2017.
Token
The basic unit an LLM reads and writes — roughly equivalent to a word or part of a word.
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Disclaimer
This definition is provided for educational and informational purposes only. It represents a general explanation of a technical concept and does not constitute professional, technical, or investment advice. Artificial intelligence is a rapidly evolving field; terminology, techniques, and capabilities change frequently. Coaley Peak Ltd makes no warranty as to the accuracy, completeness, or currency of the information provided. Nothing on this page should be relied upon as the sole basis for commercial, technical, legal, or investment decisions without independent professional advice.
Document reference: ISO_webpage_knowledge-base_glossary_v1
Last modified: 29 March 2026
Knowledge Base·Foundational Concepts·Large Language Model (LLM)